In the middle of January, crypto investors want to know why the price of Bitcoin has skyrocketed. Is this a dead cat bounce, a bull trap, or is the BTC bottom soon, if not already past? Crypto analysts offered a wide range of opinions.
Bitcoin price remained in rejection territory until december. Sellers were parting with the coin on crypto exchanges for $16,750 and lower for 1 BTC. Then, in January, the crypto market was caught in a tailwind of macro risk sentiment.
After inflation cooledjob numbers improved and consumer confidence picked up in December, crypto prices soared.
The rally began to pick up pace with the new year’s turnover. Then the bulls took it parabolic last week.
So, has the bottom of Bitcoin already been reached?
Is a Bitcoin Bottom here? Some Crypto Analysts Say Yes
Fundstrat’s Sean Farrell is encouraged that Bitcoin’s bottom is near after BTC’s rally erased many Alameda-FTX losses. Farrell says there is a “high probability” that the “absolute” low in Bitcoin prices is near.
He is Vice President of Digital Strategy at Fundstrat Global Advisors. The market strategy and financial research firm has been bullish on cryptocurrencies for years.
A popular crypto analyst who goes by the nickname “Smart Contractor” told his More than 280,000 Twitter followers on January 13 that his instincts told him the bottom was there. He is credited with correctly calling the 2018 Bitcoin background.
But smart entrepreneur also had some arguments to accompany their premonitions. The crypto analyst pointed out that the recent rally broke through two diagonal resistance trendlines. One was from the November 2021 ATH. The other is from the fall in BTC price since June 2022.
“This weekly BTC candle is a strong AF breaking very important trendlines and the low-end momentum is still strong.”
Rekt Capital, another popular crypto trader and analyst with over 333,000 Twitter followers written by the same weekly candle:
“This current BTC weekly candle looks a lot like the April 2019 weekly candle which confirmed a new bull market”
Based on a multi-year analysis of the Bitcoin halving cycle, Rekt Capital expects a Bitcoin price bottom in 2023.
Some don’t agree
The Crypto Lemon, trading since 2016, says there is an upcoming Bitcoin price floor, but we still have a long way to go before we reach it.
Lemon has downloaded the famous Wall Street Cheat Sheet chart. But they have included edit lines to show that they believe prices are still heading towards a macro bottom, not there yet.
CryptoQuant suits it the background is not based on the PNL index and bear/bull market cycle indicator.
Katie Stockton of Fairlead Strategies say that overbought technical indicators suggest we are not at the bottom yet. She predicts that there will be a pullback to the next Fibonacci retracement level near $21,500.